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Shortput

Trade Idea (IRA/Retirement Account): EMB May 21st 103 Short Put.. for a .95/contract credit. Notes: With a current yield of 4.032% (4.381/share annualized) versus a TLT (20 Year + Maturity Treasuries) yield of 1.607%, a play to acquire this emerging market bond fund at a 102.05 break even or below. On a one-lot basis, a bit buying power heavy, so consider acquiring a smaller amount of shares if it ever gets to around this level if short putting isn't an option here. Me personally, just looking to deploy some idle buying power while I wait for an uptick in broad market volatility here in an underlying where, if assigned, I get paid to wait as I reduce cost basis via selling call against. An alternative go-to would be in HYG (current yield 4.676%; 4.142/share annualized), where I could see selling acquisitional puts in the low 80s (e.g., the May 83 short put (68 DTE) is paying .69 here.
NASDAQ:EMB
by NaughtyPines
Opening (IRA): IWM April 23rd 195 Short Put... for a 2.80 credit. Notes: My weekly, 16 delta short put in the expiry nearest 45 days in the broad market exchange-traded fund with the highest 30-day (currently IWM). 1.46% ROC at max as a function of notional risk. 192.20 break even. Alternative Trades: IWM April 23rd 190/195 short put vertical, paying .64 at the mid price, 12.8% ROC at max on buying power of 4.35. RUT April 23rd 1915/1965 short put vertical, paying 6.35 at the mid price, 12.7% ROC at max on buying power of 43.65.
AMEX:IWM
by NaughtyPines
OPENING (IRA): SPY JUNE 21ST 245 SHORT PUT... for a 2.60 credit. Notes: Targeting the short put strike in June paying at least 1% of the strike price in credit (See Post Below). Roll up intraexpiry at 50% max with > 45 days until expiry; pull off on approaching worthless and/or sell call against if assigned. I would note that you will not make squat with this type of setup if you just set and forget it and everything expires worthless, since your ROC %-age is around 1% at max on fill in a cash secured environment. Consequently, you will have to monitor these positions and roll up the short puts at appropriate junctures in order to collect more credit and get a better ROC %-age as a function of notional risk and/or sell call against if assigned. It is also probably better to deploy over time and on red days to take maximal advantage of implied volatility/heightened premium. I'm opting for being somewhat lazy here as I approach retirement, where I value my free time more than my screen time, so am looking for a setup that is minimally invasive of my time, does what I generally need it to do from an ROC %-age perspective, and keeps my buying power engaged and working for me, even if theta decay is slow.
AMEX:SPY
by NaughtyPines